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🇰🇷 South Korea /Economy & Trade

AI Demand Fuels Record South Korean Exports in July

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • South Korea's exports in July neared $100 billion, marking the second-highest monthly total on record, driven by surging demand for memory semiconductors.
  • Semiconductor exports alone exceeded $40 billion for the second consecutive month, with their share of total exports rising to over 40% from 20% a year ago.
  • The trade surplus also widened significantly, reaching over $30 billion in July, contributing to a cumulative surplus of $168 billion for the year.

South Korea's export performance in July reached historic highs, with total exports nearing $100 billion, the second-largest monthly figure ever recorded. This surge is largely attributed to a significant increase in demand for memory semiconductors, fueled by global investment in artificial intelligence.

The July exports recorded a high figure in the $90 billion range even at the beginning of the second half of the year.

— Kim Jeong-kwanMinister of Trade, Industry and Energy, commenting on the strong export performance.

Semiconductor exports were a standout performer, surpassing $40 billion for the second month in a row. Their contribution to the overall export pie has more than doubled, jumping from 20% in July of the previous year to 41.5% this year. The Ministry of Trade, Industry and Energy highlighted the growing demand for server memory chips due to AI popularization and the rise of inferential AI, alongside increasing fixed prices for DRAM and NAND flash memory.

(This is) because exports have diversified based on product competitiveness, with non-semiconductor items also showing high growth rates.

— Kim Jeong-kwanMinister of Trade, Industry and Energy, explaining the reasons for export diversification.

Beyond semiconductors, other sectors also showed robust growth. Computer exports soared by over 400%, driven by corporate demand for solid-state drives (SSDs) for AI infrastructure. Steel exports saw a modest increase, supported by AI data center construction in the United States. Automobile exports grew by 7%, primarily due to strong sales of hybrid and electric vehicles, while internal combustion engine car exports declined.

The export conditions are expected to be challenging going forward, including the U.S.'s Section 301 tariffs, increased protectionism in major countries, and uncertainties in the Middle East.

— Kim Jeong-kwanMinister of Trade, Industry and Energy, outlining potential challenges for future exports.

The strong export performance led to a substantial trade surplus of over $30 billion in July, continuing a trend of significant monthly surpluses. This brings the cumulative trade surplus for the first seven months of the year to $168 billion. Despite the positive outlook, the Ministry acknowledged potential headwinds for the second half of the year, including new U.S. tariffs, rising protectionism, and geopolitical uncertainties in the Middle East.

We will mobilize all available policy measures so that our companies can respond to tariffs and non-tariff barriers in a timely manner.

— Kim Jeong-kwanMinister of Trade, Industry and Energy, pledging government support for businesses.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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